Le Mars, IA 2025 Housing Study
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Executive Summary
As Le Mars looks to the future, PorchLight was contracted to assess the upcoming housing needs of the community. Typically, a housing study relies on historical data to predict future growth and needs and assumes the trend lines will hold steady. However, it is not business as usual in Le Mars. Le Marsâ Vision 2045 plan seeks to bend the population curve and achieve ambitious growth targets, and Le Mars is putting plans into action to support and induce that growth. Ignoring those efforts would leave Le Mars woefully unprepared, and likely unable, to meet the housing demands of a growing population.
Throughout the report, we take a two-track approach: describing what the historical data tells us in what we call the âBase Scenarioâ and describing the needs of the community to stay on track for its growth targets in the âVision 2045 Scenario.â These two scenarios will help leaders and decision-makers in Le Mars understand the historical context and the necessary work to achieve Vision 2045. (Appendix A)
As Le Mars looks to grow, we recommend the following:
1. To stay on track for a population of 20,000 by 2045, Le Mars should seek to increase its owner-occupied housing stock by 1,214 units and its rental housing stock by 1,052 units by 2033, compared to 2023. This is in contrast to a needed increase of 271 owner-occupied units and 398 rental units by 2033 under the base scenario.
2. Le Mars should prioritize affordability, not just availability, as it increases housing supply.
3. Le Mars should work to generate affordable housing stock for first-time homebuyers through targeted efforts.
4. Le Mars should prioritize senior housing options.
5. Le Mars should pursue stronger measures around code enforcement and property upkeep.
6. Le Mars should prioritize community cohesion and proactive communication of its vision as the community grows.
Visit the Recommendations section for more detail.
Right now, Le Mars is a community many people want to move to with very little housing availability. Workers commute into town for work due to lack of housing and people with a connection to the community seek to move back but cannot find available housing. Major employers all have employees that would move to town if they could find available housing that meets their budget needs. (Appendix J.iv)
Le Mars should fill this gap through a variety of housing types (single-family homes, townhomes, and apartments) to meet different budgets while prioritizing efforts to open up housing stock for first-time homebuyers (an across-the-board request from employers) by re-activating older, less expensive housing stock by transitioning interested seniors to senior-oriented housing and ensuring some of the new housing builds not built for a specific buyer (spec builds) in Le Mars are built to be priced at the lower end of the cost range and enter the market at that price. (Housing Needs Analysis)
Read on through the rest of the report for our recommendations, a detailed housing needs analysis, and an appendix full of detail and additional analysis.
Table of Contents
Recommendations
Based upon the analysis and research contained in this report, we provide the following recommendations for Le Mars, IA.
1. Le Mars should seek to increase its owner-occupied housing stock by 1,214 units and its rental housing stock by 1,052 units by 2033 to have housing to support the goal of a population of 20,000 by 2045.
Historical data indicates that at a minimum Le Mars needs 271 owner-occupied units and 398 rental units by 2033, but based on available data and interviews with individuals across industries and perspectives, there is significant additional demand for housing if it were available. (Housing Needs Analysis)
2. Le Mars should prioritize affordability, not just availability, as it increases housing supply.
Part of the appeal of a community like Le Mars is an affordable cost-of-living, and if housing costs are too high, Le Mars may not be as attractive for potential residents. (Appendix J.ii)
Generally, housing is considered affordable, in that the residents are not cost-burdened, if a household spends less than 30% of its income on housing costs. However, in Le Mars, residents often spend less of their income on housing costs and may expect to spend much less than 30% of their income on housing for it to feel âaffordable.â (Appendix D)
For households with a household income above $75,000, newly-built single-family homes may be affordable, but for the majority of households in Le Mars with a household income of less than $75,000, units that can be built more affordably, like townhomes or apartments, will play a role in achieving this objective. (Appendix E)
Employers generally indicated that their employees seek single-family homes, but additional housing types will be necessary to affordably provide housing for everyone in Le Mars.(Appendix J.iv)
3. Le Mars should work to generate affordable housing stock for first-time homebuyers through targeted efforts.
Across the spectrum, there is significant concern about the ability for first-time homebuyers to find a home in Le Mars. Two major factors are contributing to this issue. (Appendix J.ii)
First, new construction is expensive across the country, but new builds could be built at a lower cost in Le Mars. Attempts at spec homes (speculative homes - homes built before a specific buyer is lined up) have been converted to premium housing builds due to high demand, so in reality affordable spec houses are not hitting the market. New housing stock in the $350,000 range or lower simply isnât being built. (Appendix J.v)
If Le Mars wants to see new, single-family homes built for affordable prices, those efforts will need to be intentional. Otherwise, the time and energy of builders will be pulled only toward premium housing.
Additionally, older homes are staying off the market. Homes built longer ago could be ideal housing stock for first-time homebuyers, but there is little availability. In the most recent American Community Survey data, Le Mars had a 0% vacancy rate for owner-occupied housing. (Appendix G)
4. Le Mars should prioritize senior housing options. Based on conversations in the community, there is strong demand for additional housing options for seniors. This could include specific apartments, condominiums, or townhomes where seniors can gracefully age in place, including HOA-style lawn and snow maintenance, single-level living, smaller floorplans, and accessible features. (Appendix J.vii)
It is essential to note that not all seniors seek to leave their current home and there is no problem with that. Seniors who wish to remain in their current homes should be encouraged and supported in their efforts to do so.
However, some seniors strongly desire to age in the community with housing more suited to their needs. If such housing becomes available, those seniors will move and open up older, single-family homes that may be a good fit for the workforce and families seeking to purchase homes to fit their lifestyles at a more affordable cost than new builds.
5. Le Mars should pursue stronger measures around code enforcement and property upkeep.
Most homes in Le Mars (81%) are in very good condition, but many homes require attention to be move-in ready housing stock. Particularly in the older parts of town, beautiful, well-maintained homes sit next to homes that require minor or even major repairs. (Appendix I)
Through stronger code enforcement, Le Mars can ensure that small problems donât become larger ones so that most housing stock can be re-sold in good condition, rather than requiring a tear-down or flip.
6. Le Mars should prioritize community cohesion and proactive communication of its vision as the community grows.
Le Mars has an aggressive plan for growth in Vision 2045 and a bold vision to thrive and excel with that growth. Communicating that vision is not easy and no amount of communication will keep every citizen fully informed.
However, throughout our conversations in the community, we heard apprehension that Vision 2045 is simply a plan to throw fuel on the fire of population growth without the amenities and support structures to properly manage that growth. Vision 2045 lays out a clear plan to properly manage growth, but not everyone in the community is familiar with it.
In particular, as new residents arrive in Le Mars, the City should be proactive in helping new residents integrate into and be welcomed into the culture of Le Mars.
Housing Needs Analysis
To project future housing unit needs for Le Mars, PorchLight used our custom housing model based on the Envision Tomorrow Balanced Housing Model.
This analysis looks first at owner-occupied housing and then rental housing across two scenarios: a base population scenario rooted in historical data and a Vision 2045 scenario accounting for Le Marsâ efforts to grow its population. Throughout this section, brown represents the most recent available data (2023), blue represents the base scenario, and yellow represents the Vision 2045 scenario.
The owner-occupied and rental analysis each includes a summary of the modeling by scenario, a high-level look at the expected change in housing units required, and a summary table showing the net change required by 2033 compared to 2023.
Owner-Occupied Housing
The following charts show the modeling PorchLight conducted to estimate demand for owner-occupied housing units in 2033. We first look at current households by income, then adjust for changes in age cohorts, trends in how much people pay compared to their income in Le Mars, adjust to reach ideal vacancy rates, and then adjust for stock that is anticipated to become obsolete.
Based on our modeling, the following column chart demonstrates changes to expected demand for housing units by income compared to today. The brown column represents today, the blue column represents the expected units based on the base modeling, and the yellow column represents the expected units based on the Vision 2045 modeling.
If a blue or yellow bar is taller than the brown bar it is grouped with, that means additional units in that range are required. If a blue or yellow bar is shorter than the brown bar it is grouped with, that means units are oversupplied in that range.
Based on the above modeling, this table presents the net need for units to supply each income category.
For income categories that have a net negative demand for units, this does not mean those units need to be demolished or taken offline. It just means that demand in surrounding income categories may be lower and this should be accounted for.
In total, Le Mars needs 271 owner-occupied units by 2033 according to the base model and 1,214 units by 2033 according to the Vision 2045 model. This discrepancy is wide, but it aligns with the aggressive growth targets of Vision 2045.
In Le Mars, the median single-family home has cost $400,000-$500,000 to build in the past few years, while the average multi-family unit has cost around $100,000 to build in recent years. (Appendix H) Conversations in the community have indicated that it is possible to build spec single-family homes for less than what homes are currently being built for, but demand for premium housing has left little capacity for building spec homes. (Appendix J.v)
While the demand for owner-occupied housing in Le Mars may exist at household incomes of $75,000 and below, at these income levels, construction costs and interest rates mean new housing units will likely need to be mobile homes, condominiums, or townhomes, or this demand for housing may need to be filled by the rental market. Building new homes for less than $400,000 will require concerted and innovative efforts from the City of Le Mars. At $400,000 and above, the market should be able to fill these needs, though specific efforts to build affordable spec homes may still be required.
Changing interest rates and household-specific down payment amounts make home prices required for specific incomes highly variable. Because the interest rate environment over the life of this report is variable, we do not provide recommendations for specific home prices. For individuals building their own homes, the owner-occupied market will take care of itself, as long as they can secure land and builders. However, for spec homes, townhomes, etc., builders will need to assess the financial environment and market as they prepare a specific project.
Use this calculator to get a sense of what these income bands translate to in terms of purchasing power.
Home Affordability Range Calculator
Rental Housing
The following charts show the modeling PorchLight conducted to estimate demand for rental housing units in 2033. We first look at current households by income, then adjust for changes in age cohorts, trends in how much people pay compared to their income in Le Mars, adjust to reach ideal vacancy rates, and then adjust for stock that is anticipated to become obsolete.
Based on our modeling, the following column chart demonstrates changes to expected demand for housing units by income compared to today. The brown column represents today, the blue column represents the expected units based on the base modeling, and the yellow column represents the expected units based on the Vision 2045 modeling.
If a blue or yellow bar is taller than the brown bar it is grouped with, that means additional units in that range are required. If a blue or yellow bar is shorter than the brown bar it is grouped with, that means units are oversupplied in that range.
Based on the above modeling, this table presents the net need for units to supply each income category.
For income categories that have a net negative demand for units, this does not mean those units need to be demolished or taken offline. It just means that demand in surrounding income categories may be lower and this should be accounted for.
In total, Le Mars needs 398 rental units by 2033 according to the base model and 1,052 rental units by 2033 according to the Vision 2045 model. That is a wide discrepancy, but it makes sense in the context of the aggressive growth targets of Vision 2045.
Based on conversations in the community and our modeling, demand for very premium rental housing (affordable only to those with incomes of $150,000+) in Le Mars is low, as most people moving to Le Mars seek a single-family home and to own their home. (Appendix J.iv) Our model does not project any demand for rental housing in Le Mars at this level because while some people with incomes this high do rent in Le Mars, none of them spend a significant portion of their income on rent. There may be some demand for very premium rentals, but there is no data available to indicate that is the case.
Based on existing trends in Le Mars, most new rental units would be expected to be multifamily units, with some single-family homes for rent and some townhomes.
Appendix
A. Population Data and Trends
To understand current population patterns in Le Mars, PorchLight analyzed 10-year age groups to understand age-based population inflows and outflows.
To understand how this analysis works, it is easiest to consider a specific age group. For example, consider the cohort born in or after 1998, who will be aged 35-44 in 2033. Hover over â1998: 35-44â in the chartâs key to see this cohort highlighted. In 2013, this cohort was aged 15-24 and there were 1,135 of them in Le Mars. Ten years later, this cohort was aged 25-34 and numbered 1,345. To estimate the size of this cohort in 2033, we look at the 1988 cohort, which decreased by 12.7% when aging from the 25-34 cohort to the 35-44 cohort, and assume the 1998 cohort will decrease in a similar way as they go through that same age transition. Some age groups will see increases and some will see decreases, and this modeling process helps us understand those age-specific changes based on the demographic push/pull factors of Le Mars.
In 2013, the population of Le Mars was 9,568. In 2023, 10,597. We estimate that, in a base scenario, the population of Le Mars will increase to 11,466. However, Le Mars is not operating under a base scenario. The City is actively seeking growth through its Vision 2045 plan, which seeks for the City to reach a population of 20,000 by the year 2045 through substantial efforts to achieve that goal.
With that in mind, this report is built around two scenarios: the first is a business-as-usual scenario, which we call the base scenario, and the second scenario assumes Le Mars makes appropriate progress to be on track for its Vision 2045 goal, which means that by 2033 (this reportâs ten-year window) Le Mars will have reached a population of 14,870.
To estimate the Vision 2045 scenarioâs age distribution, we applied a uniform basis point increase (34.95%) to each age groupâs projected base scenario population percentage increase, with the basis point increase halved for age groups over 65 to account for Le Marsâ focus on attracting workforce.
This helps to show the anticipated age breakdown as Le Mars seeks aggressive growth. There is no way to predict the exact age breakdown perfectly, but this method provides a reasonable estimate.
B. Household Data and Trends
Because multiple people often live in one household, we also look to household level data, by age. Based on population projections, we project the number of housing units by householder age.
C. Housing Tenure
In Le Mars, 2,709 households are owner-occupied (62%) and 1,647 are renter-occupied (38%). In US Census data, the term âtenureâ is used to differentiate between owner-occupied versus renter-occupied households.
Generally, households with higher incomes own more than they rent, but it is not a perfect correlation. The below chart shows owners versus renters by household income.
D. Housing Costs
i. Rental Households
The following chart compares the number of rental households at a particular household income in Le Mars (yellow bar) compared to the number of units being rented that are affordable at that income (blue bar).
Of note is that there are 819 rental units affordable for those with an income from $35,000-$49,999, but only 115 households that actually make that income. Many households making more than $50,000 are paying less than they can afford for rent.
This is borne out in the housing affordability data, as seen in the chart below. Most rental households with an income of $50,000 or more in Le Mars spend less than 20 percent of their household income on rent. At that same time, rental households with lower incomes find it difficult to afford rent, with the majority paying more than 30 percent of their income in rent.
ii. Owner-Occupied Households
The following chart compares the number of owner-occupied households at a particular household income in Le Mars (yellow bar) compared to the number of owner-occupied units that are affordable at that income (blue bar).
This distribution is a bit more balanced than the rental market, though there are an unusually high number of units affordable at the $15,000-$34,999 income range. However, this should be interpreted with caution, as Le Mars has many homes that are paid off and are thus quite affordable for the owner on a monthly basis, but would be significantly more expensive on a monthly basis if sold to a new owner who would have a mortgage.
The 2023 US Census affordability data bears this out. Most owner-occupied households with an income of $50,000 or above are currently paying an affordable or very affordable amount of their income for monthly housing costs, but at the lower end of the income spectrum more households are paying an amount where they would be considered cost-burdened.
E. Income Data
The median household income in Le Mars is $72,381 and the mean income is $90,390. Hover over any particular value to see the exact amount of households in that income range.
F. Economic Analysis
i. Inflow/Outflow Analysis
Using commute data from the United States Census, PorchLight analyzed the commute patterns of Le Mars workers and residents.
In total, there are 5,462 workers that live outside of Le Mars but commute into the community for work. The US Census classifies these as âInflowâ workers, and they comprise 64.4% of people who are employed in Le Mars.
The rest of the people who are employed in Le Mars (35.4%) live and work in Le Mars. The US Census classifies these as âInternalâ workers.
Additionally, there are 3,045 people who live in Le Mars but leave to another community for work, meaning that 50.5% of people who live in Le Mars commute out of the community for work. The US Census classifies these as âOutflowâ workers.
Net, 2,417 more people commute into Le Mars for work than commute out of the community for work.
A very significant number of the employees who commute into the community work in manufacturing. Below, you can see the net inflow (workers who come to Le Mars for work minus workers who leave Le Mars for work) by industry.
The median annual wage for a full-time, year-round manufacturing worker in Le Mars is $56,532, slightly higher than the overall median annual wage of $54,729 for all full-time, year-round workers in Le Mars. (Note: this is individual income and not the same as household income as described in Appendix E.)
The below chart shows median wage along the horizontal axis and net inflow along the vertical axis, with each data point representing a specific industry. Hover over any data point to see more precise information.
People commute from many locations to work in Le Mars. According to the most recent data (2022) from the US Censusâs OnTheMap program, 1,503 people commute from Sioux City, 257 commute from Remsen, 173 commute from Akron, 170 commute from South Sioux City, NE, and 121 commute from Kingsley.
Explore the interactive heat map below to see where Le Mars workers commute from by zip code. Clicking on a specific data point will reveal more information.
G. Vacancy Rates
According to the American Community Survey, in 2023, 165 housing units in Le Mars were vacant. Of those, 93 were available for rent, 33 were rented, but not occupied, 0 were for sale, and 11 were sold, but not occupied. 28 were vacant but not on the market. (B25004)
These meant there was a homeowner vacancy rate of 0.0% and a rental vacancy rate of 5.2%. (DP04)
For owner-occupied units, we recommend a target vacancy rate of around 2%.
A 2% vacancy rate for owner-occupied housing demonstrates some availability in the market without a significant number of vacant properties. The typical American homeowner spends about 13 years in their home, and up to 90 days on the market is considered an appropriate amount of time for a home to sell. Taking these factors into account, a home following a typical homeownership cycle will spend about 2% of time vacant. This indicates appropriate housing availability without long-term vacant housing.
For renter-occupied units, we recommend a target vacancy rate of 5-8%. Rental units experience higher turnover and provide necessary slack in the housing market. A 5-8% vacancy rate indicates the average rental unit spends one month vacant every 12-20 months.
H. Building Permits
From 2022-2024, Le Mars has permitted 174 new housing units, 27 of which were single-family structures and 147 of which were multi-family units.
Comparing the construction costs of new builds in Le Mars to the US Census Midwest construction cost averages, Le Mars is not a significant outlier for the years 2022 and 2023. Median construction costs were $3,000 lower in Le Mars than the Midwest as a whole in 2022 and $55,000 higher in 2023.
The average home construction cost increased significantly in 2023, but this is due to an outlier home and the average cost for 2024 in Le Mars decreased significantly, though 2024 Midwest averages are not yet available.
Constructing a single-family home is much more expensive on average than constructing a multi-family unit. In 2024, the average construction cost of $583,875 for a single-family home was 5.5 times the construction cost of the average multi-family unit at $105,943.
I. Housing Condition Inspection
On April 4-5, 2025, PorchLight conducted a visual inspection of detached single dwelling units (single-family homes) in Le Mars through a windshield survey.
Homes were evaluated according to the following rubric:
The results of the inspection can be viewed in this interactive map. Exact coordinates have been âjitteredâ through random noise added to the latitude and longitude to obscure the exact classification of specific homes. Click the information button to see the legend and color-coding system.
Overall, PorchLight reviewed 3,432 detached single dwelling units. 2,790 (81.3%) were in sound condition, 576 (16.8%) required minor repairs, 51 (1.5%) required major repairs, 2 were dilapidated (0.1%), and 13 (0.4%) were under construction, which includes homes in the process of significant repairs. 32 houses had âfor saleâ signs, though some of those had already been sold.
To summarize broader data trends, Le Mars has been split up into several neighborhoods for comparing housing condition. This map visualizes homes by neighborhood. Click the information button to see the legend and color-coding system.
Unsurprisingly, older and more established neighborhoods had more housing units in need of repairs than neighborhoods primarily made up of newer builds.
J. Community Input Summary
i. Lack of Available Housing
Across all stakeholder groups, there was broad agreement that limited housing availabilityânot just affordabilityâis the most immediate barrier in Le Mars. The shortage is especially severe in the $250,000 to $375,000 range, often described as the âspec houseâ or âmove-upâ tier. âThereâs that sweet spot where the availability is virtually none,â one participant noted. âThose houses, as they come for sale, theyâre gone if you donât buy it the same day.â Another put it more bluntly: âIf I had a handful of houses under $300,000, they would go like thatâright now.â
This gap stifles mobility within the market. Families who could move up are stuck in place, and younger buyers have nowhere to enter. âYou just buy whatever you can get, and then you sit in the weeds until you can do what you want,â someone said. Even older homes that might serve as entry-level options are scarce or snapped up quicklyâoften by landlords. âAnything that is below $125,000 will be bought before it hits the market by landlords.â
Rental housing faces similar pressure. Multiple developers said they are fully leased with ongoing demand. âI get five inquiries a day,â said one. âI donât even have posts online.â Despite strong demand, few are building at lower price points, and even new multifamily developments fill quickly. The consensus was clear: demand is not the issueâsupply is.
ii. Affordability Challenges
Alongside limited inventory, many in the community described deepening challenges around affordability, especially for those entering the housing market. While homes priced around $250,000 to $300,000 are sometimes labeled âaffordable,â that definition doesnât reflect the reality for many households. As one person put it, âAffordable housingâ$250,000 or whateverâis not affordable.â Another added, âThatâs just not going to work for a lot of people.â
These challenges are particularly acute for individuals working in healthcare and education. Some residents with steady jobs and solid incomes find themselves priced out, unable to meet down payment requirements or justify purchasing older homes that require substantial repairs. Several shared examples of individuals who wanted to live in Le Marsâsome with local rootsâbut ended up settling in smaller nearby towns or larger metros because the financial barriers were too steep.
Down payments and repair costs are recurring pain points. âWe already borrowed money from family just to get the loan,â one participant explained. âNow weâre being told we also need to fix the siding and windows. Thatâs just not doable.â Even homes that appear to be priced within reach often require tens of thousands in updates, pushing them well beyond what many buyers can manage.
Monthly costs are also a growing concern. âI can make the payment, but I canât replace the roof or fix the siding,â one person said. âThereâs nothing left over.â Insurance, taxes, and maintenance costs are rising, and many buyers feel stretched thin before they even walk through the front door. As one participant put it: âAffordability is huge. People talk about it like itâs a secondary issueâbut for many, itâs the thing thatâs stopping them from staying here, or moving here at all.â
iii. Bottleneck from Seniors Aging in Place
Another recurring theme was the limited movement within the housing market caused by older residents remaining in their longtime homes, often because there are few appealing options to move into. Many of these homesâoften modest, well-located, and otherwise ideal for first-time buyersâare effectively âoff the marketâ because their owners arenât ready to downsize unless a better-suited option exists. As one participant put it, âWe would leave our house if that senior housing existed⌠and I think thereâs a number of us out there.â
The lack of maintenance-free, single-level homes with services like lawn care or snow removal was frequently cited. Interest in 55+ communities or similar housing models was described as high, with residents often saying they âjust want to lock the door and leave for the winter.â However, options that meet those needs are rare, and in some cases, residents are watching similar developments take shape in neighboring communities while feeling left out locally.
Several participants noted that the demand is not just theoretical. As one person shared, âWe started talking publicly about 55-plus housing and the phone started ringing off the hookâpeople asking when it would be ready, if they could help design their own.â In the absence of those options, seniors stay putâand in doing so, keep the housing ladder jammed for younger households trying to enter the market. âIf you can get those folks to move, it opens everything else up,â one attendee observed.
iv. Demand from Commuters and Returnees
There was strong consensus across roundtables that Le Mars has a large base of people who want to live in the communityâbut currently canât find housing. A major portion of this unmet demand comes from commuters who work in Le Mars but live elsewhere, often in nearby cities like Sioux City or in smaller surrounding towns. Several participants pointed to internal surveys and workforce data indicating that a majority of employees at large local employers live outside the community, and many of them have expressed interest in relocatingâif homes were available. âJust one employer alone has over a thousand people commuting in, and hundreds of them would move here if they could,â one person noted.
This group isnât just transient labor. It includes people with stable jobs, families, and long-term interest in the area. Some are returning to the region after time awayâformer residents looking to come home to raise children or be near family. Others are relocating for work and would prefer to live where theyâre employed. âIâve had three calls in the last month from people with kids who want to move back,â one participant said. âTheyâre looking for that $300,000 home, but they canât find it.â
Some of these prospective residents are already familiar with Le Mars, while others discover it through work, family connections, or community visits. In either case, the message was clear: people are trying to move to Le Mars, but the housing market isnât ready for them. As one stakeholder summed it up, âEvery time people come visit, they say, âI could live here.â And then the question becomes: how?â
Much of this demand is for single-family homes.
v. Developer Constraints
Participants consistently noted that even with strong demand, producing new housing at affordable or mid-range price points is increasingly difficult. Construction costsâdriven by materials, labor, and interest ratesâhave escalated to the point where itâs nearly impossible to build a modest single-family home at a price point accessible to first-time buyers or moderate-income households. One participant remarked, âYou used to be able to build a basic home for under $200,000. Now, even a no-frills home ends up over $300,000.â
There was widespread agreement that many people are looking for homes in the $250,000 to $350,000 range, but that very few new homes are being built to meet that need. In some cases, those interested in building are choosing higher-end custom homes, leaving a gap in the middle of the market. Meanwhile, builders face pressure from buyers expecting upgraded features that raise the base cost of constructionâsuch as larger garages, finished basements, or premium finishes. As a result, even homes initially planned as affordable can quickly price out of that category.
Participants also emphasized the importance of incentives in closing the gap between what it costs to build and what buyers can afford. Programs like tax abatements and workforce housing credits have helped in the past, but thereâs growing concern that reductions in these incentivesâsuch as shorter terms or reduced eligibilityâwill further limit what gets built. One person summarized the sentiment clearly: âWithout incentives, a lot of those homes just wonât get built.â
Across discussions, the message was consistent: the challenge isnât a lack of interest in buildingâbut a financial model that no longer pencils out for the types of homes most needed in Le Mars.
vi. Rental Market at Capacity
Participants across all conversations agreed that rental housing in Le Mars is functionally full, with demand consistently outpacing supply. Several property owners and developers noted that they receive multiple inquiries per dayâoften without needing to advertise. âI get five inquiries a day,â one person shared. âI donât even have posts online.â Others described similar experiences, with entire buildings fully leased before construction is complete or units being rented by word-of-mouth alone.
The types of renters vary, but include local workers, recent arrivals, commuters hoping to relocate, and individuals returning to the community. Some participants specifically mentioned an uptick in people moving from larger cities in the region, attracted by Le Marsâ quality of life and job opportunitiesâbut unable to find a place to rent. Despite steady demand, many said that new rental development has slowed, due in part to higher construction costs and the end of some tax credit programs.
While some new multifamily units have been added in recent years, participants emphasized that the current stock doesnât match the level or pace of demand. In many cases, the few available units are too expensive for lower-income residents, or too small for families hoping to stay long-term. Others described frustration with the lack of options for seniors looking to downsize into maintenance-free rental units, or for young professionals ready to move beyond shared housing or apartments with limited amenities.
The result is a market where many people who would prefer to live in Le Mars simply canât find a place to rentâand where those already in the community are often staying in housing that no longer fits their needs. As one participant put it, âThereâs just nothing open, and if something does open, itâs gone immediately.â
vii. Housing Quality and Rehabilitation Needs
Participants repeatedly pointed to wide variation in the quality of Le Marsâ existing housing stock, especially in older neighborhoods. While some homes have been beautifully maintained or updated, others are significantly deterioratedâyet still selling due to limited supply. âIt needs so much work,â one person said of a recent listing. âBut it still sold for full price because thereâs nothing else available.â This mismatch between price and condition was a recurring theme: homes needing new roofs, windows, wiring, or siding are often priced well above what would typically be expected for their condition.
Many described visual and structural inconsistencies on the same block, where a newly remodeled home might sit next to one thatâs been neglected for years. These inconsistencies can deter buyers and suppress neighborhood appeal. âItâs a mess,â one participant said of a recent drive through town. âYou see a beautifully renovated house, but next door, the sidingâs falling off. And theyâre both selling.â Others noted that the presence of poorly maintained rental properties in particular can make entire streets less desirable, regardless of whether those units are occupied.
Participants also highlighted the missed opportunity in the cityâs aging housing stock. Many of these homes could serve as solid starter homes or rentals if rehabilitated, but costs associated with demolition, repairs, or code compliance are often too high for private buyers or small-scale developers. âPeople are very cash poor,â one participant noted. âThey canât afford to buy a place that also needs $50,000 in work.â
Several conversations touched on the need for more coordinated efforts to support rehabilitationâthrough local incentives, targeted code enforcement, or programs to assist with maintenance and upgrades. As one person put it, âWe talk about needing more housing, but weâve got housingâsome of it just isnât livable right now.â
viii. Strong Interest in 55+ and HOA-Style Housing
Many participants emphasized a strong and growing demand for housing tailored to older adults, particularly options that offer ease of maintenance, single-level living, and shared services like lawn care and snow removal. This interest was often described as âpent-up,â with residents expressing a desire to downsize but staying in their current homes because there are no appealing alternatives. âWeâd leave our house if that senior housing existed,â one person said, echoing a sentiment heard in multiple discussions.
The popularity of 55+ housing and similar models appears to be driven by both lifestyle and necessity. Participants noted that many older adults are looking for homes where they can âlock the door and leave for the winter,â or stay local as they age without the burden of upkeep. Some referenced nearby communities that have already developed these kinds of propertiesâdrawing interest from Le Mars residents who couldnât find comparable options locally.
There was also recognition that these developments can have a powerful ripple effect: by giving older homeowners a place to move, their current homesâoften in good locations and of manageable sizeâbecome available to younger buyers. As one person put it, âIf you can get those folks to move, it opens everything else up.â
In some parts of town, plans for this type of housing are already in motion, but progress has been slow. Yet even informal discussions about new 55+ housing options have sparked immediate interest. âAs soon as we started talking about it, the phone started ringing,â someone recalled. âPeople wanted to know when it would be ready, and if they could help design their own unit.â
The message was clear: there is significant unmet demand for housing that allows older residents to age in place or transition into a lower-maintenance lifestyleâand meeting that need could unlock mobility across the housing market.
ix. Need for Public Incentives and Policy Support
Participants across multiple sectors emphasized that public incentives are critical to making housing development financially viable, especially in the price ranges where demand is highest. While interest in building exists, several noted that the economics simply donât work without help. âWithout incentives, a lot of those homes just wonât get built,â one participant said, summarizing a widespread concern.
Incentive programs such as tax abatements, workforce housing tax credits, and discounted land were credited with making past projects possible. However, there was growing anxiety about changes at both the state and local levelsâsuch as reducing tax abatement terms from seven to five years, or eliminating certain school levy exemptionsâthat may undermine future development. One person explained that even with existing credits, âit wonât cash flow⌠not without some kind of support.â
The challenge isnât limited to homeownership. Participants involved in rental housing development shared that even projects with tax credits are struggling to break even, especially when rents must remain accessible to moderate-income tenants. As one person noted, âWe got the tax credit, and it still doesnât pencil out.â
There was also discussion around the importance of local government involvementânot just through incentives, but in supporting infrastructure, streamlining approvals, and promoting infill development. Some pointed to missed opportunities when land remained unused or when potential developers backed away due to red tape or lack of site readiness.
Overall, the message was clear: Le Mars cannot meet its housing needs through market forces alone. Without sustained public support, the kinds of housing most neededâwhether starter homes, mid-range spec builds, rentals, or senior-friendly optionsâwill remain out of reach for both builders and buyers.
Acknowledgements
It has been a pleasure working with the people of Le Mars on this housing study. Thank you in particular to our steering committee: Mayor Rob Bixenman, Mark Gaul, Micah Lang, Steve Schuster, Jason Vacura, and Mike Wells. Thank you also to all of the participants in our input interviews, who provided essential information and context for this report. Thank you to the City of Le Mars for trusting us with this project, providing critical information along the way, and allowing us to use the beautiful Convention and Visitors Bureau space to conduct interviews. We loved spending time in your community.
About Us
PorchLight is the hub for rural workforce, partnering with rural communities to prepare for the 21st-century workforce. PorchLight is committed to connecting workforce to rural communities, and housing is a frequent barrier for communities to attract and retain workers. We love working with communities to solve problems and provide really good data. We pride ourselves on the connection we make with the people in the communities we serve and ability to apply that essential people-centered information to augment the data and hard numbers we collect.
We believe that you should be able to work big and live small no matter where you choose to call home.
Berk Ehrmantraut - Director of Policy and Communities
Originally from Beresford, SD (pop. 2,180), Berk is the Director of Policy and Communities at PorchLight and the lead author on this report. He leads PorchLightâs work with communities to support their workforce needs including, housing, childcare, community development, and employee attraction.
After growing up in Jamestown, ND and Aberdeen and Beresford, SD, Berk attended American University in Washington, D.C., where he earned a Bachelor of Arts interdisciplinary studies degree in Communication, Legal Institutions, Economics, and Government. He is a Certified Collaborative Discussion Coach through the Collaborative Discussion Project.
After working on South Dakota political campaigns and working as a staffer for the South Dakota legislature, Berk returned to Washington, DC , where he served as the Senior Digital Communications Manager for Friends of the Global Fight Against AIDS, Tuberculosis and Malaria, an advocacy nonprofit responsible for securing $1.56 billion in annual appropriations for programs to fight infectious diseases globally.
Berk came back to South Dakota to serve as Executive Director of a major political non-profit. In his two years serving as Executive Director, he more than doubled election cycle expenditures, revitalized the organizationâs culture, improved operational and financial procedures, delivered robust programming and events, and achieved key electoral objectives.
Berk lives in Sioux Falls, SD with his wife, Keeley.
Jessica Meyers - CEO
Originally from Winner, SD (pop. 2,852), Jessica Meyers was raised in Winner and Vermillion, SD, and earned her bachelorâs degree at South Dakota State University in Brookings. Jessica and her husband, Matt, followed the flight patterns of many young adults and left the small towns of SD for bigger cities. After 10 years of living in some of the largest cities in America, she now lives in Sioux Falls with her family. In her professional career, Jessica has worked in several industries, from publishing, sales, and healthcare recruiting, where she has run multi-million dollar organizations and won multiple national awards across industries. Pairing over 20 years of sales and recruiting experience, she is co-founder and CEO of PorchLight. This talent recruitment firm partners with rural communities to prepare for the 21st-century workforce and connect rural workers to employment opportunities.
Jessica created the first-of-its-kind PorchLight Certification and the platform where rural development and job opportunities connect.
Jessica has been married for over 25 years to her high school sweetheart, Matt, and they have three daughters, Eve, Grace, and Juliet, who live in Sioux Falls, South Dakota.